Major Acquisition Unlocks Copper-Gold Potential in Queensland's Undercover Frontier
Strategic Energy Resources (ASX: SER) has secured a significant foothold in one of Australia's most promising copper-gold exploration frontiers, acquiring the Diamantina Project from mining giant Anglo American. The acquisition represents a strategic expansion of SER's portfolio in the undercover extensions of Queensland's highly prospective Mt Isa Eastern Fold Belt.
The Diamantina Project, located 280km south of Cloncurry in western Queensland, includes two granted exploration licenses and three additional exploration license applications, covering a substantial 1,575km² area. The project lies in a region where Anglo American has already intercepted significant copper-gold mineralisation in multiple drillholes.
Most notably, drilling at the Elizabeth Springs East Prospect yielded impressive results, including 17.37m @ 1.76% Cu and 0.37g/t Au from 465.3m within a broader intercept of 161m @ 0.4% Cu and 0.11g/t Au from 449m.
SER's Managing Director, Dr. David DeTata, highlighted the strategic importance of the strategic energy resources acquisition of diamantina copper-gold project:
"The Mount Isa Inlier is one of the most metallogenic regions in the world and it is our belief that undercover extensions both north and south are the next frontier for major mineral discoveries. SER has already secured the northern extensions with our Isa North and Canobie Projects and with acquisition of Diamantina and the surrounding ground, we now control the southern extension."
Untapped Potential: Anglo American's Previous Exploration Success
Since 2018, Anglo American has systematically explored the southern undercover extensions of the Mount Isa Inlier, employing a comprehensive mineral systems approach. Their exploration programme has reduced the search space to the two key tenements now acquired by SER.
This announcement represents the first public release of Anglo American's exploration results at Diamantina, with limited drilling returning significant copper and gold intercepts. Numerous geophysical targets remain untested across the project area, suggesting considerable exploration upside.
The Diamantina Project is potentially part of a broader Iron Oxide Copper-Gold (IOCG) district. The area's geology is interpreted as the southern extension of the Mt Isa Eastern Fold Belt, a region known for hosting numerous significant mineral deposits including Osborne, Ernest Henry, Cannington, and Eloise.
Understanding IOCG Deposits: The Key to Diamantina's Potential
Iron Oxide Copper-Gold (IOCG) deposits represent some of the world's most valuable mineral systems. Unlike porphyry copper deposits, IOCGs can contain economically significant amounts of copper, gold, uranium, and rare earth elements.
IOCG deposits are characterised by:
- Abundant iron oxide minerals (magnetite and/or hematite)
- Brecciation (rock fragmentation)
- Hydrothermal alteration (chemical changes from hot fluids)
- Variable copper-gold grades with potential for other valuable elements
What makes IOCGs particularly important is their typically large size and multi-commodity nature. The Olympic Dam deposit in South Australia—the archetypal IOCG—is one of the world's largest copper-gold-uranium deposits with over 10 billion tonnes of mineralised material.
The alteration intersected in Diamantina's drill cores shows characteristics consistent with IOCG systems, particularly elevated levels of rare earth elements (REEs) and specific pathfinder elements. This geological signature is encouraging for further exploration success.
Elizabeth Springs East: The Project's Most Advanced Prospect
The Elizabeth Springs East (ESE) Prospect represents the most advanced target within the strategic energy resources acquisition of diamantina copper-gold project. This 4km by 2km coincident magnetic and gravity anomaly has been the focus of drilling by both Red Metal Limited and Anglo American.
The first drillhole by Anglo American (DTD002) intersected a broad 161m zone of elevated copper and gold associated with a magnetite-rich IOCG alteration assemblage. The high-grade copper zone of 17.37m intersected from 465.3m comprised intense magnetite alteration with chalcopyrite cross-cutting veins and red rock hematite alteration with disseminated chalcopyrite.
Significant intercepts at ESE include:
- DTD002: 161m @ 0.4% Cu and 0.11g/t Au from 449m including:
- 17.3m @ 1.76% Cu and 0.37g/t Au from 465.3m including
- 0.21m @ 8.3% Cu and 8.27g/t Au from 465.89m
- 0.67m @ 25.6% Cu and 1.29g/t Au from 482m
- DTD005b: 13.2m @ 0.44% Cu and 0.11g/t Au from 545.8m
- DTD006b: 87.3m @ 0.30% Cu and 0.16g/t Au from 469m
Importantly, the bulk of drilling at ESE is confined to an 800m by 800m area within the much larger 4km by 2km magnetic and gravity anomaly, which remains largely untested. This suggests significant exploration upside potential.
Elizabeth Springs West: Additional Exploration Target
The Elizabeth Springs West (ESW) Prospect represents another important target within the Diamantina Project. This 1.3km by 1km coincident magnetic and gravity anomaly sits within a broader 4km by 4km magnetic anomaly.
Previous drilling by Red Metal and Anglo American has intersected multiple zones of copper mineralisation, including:
- DTD001: 100m @ 0.12% Cu and 0.01g/t Au from 953m
- DTD003: 48m @ 0.11% Cu and 0.8% Ni from 924m
The ESW prospect has only been partially tested, with the majority of the magnetic and gravity anomaly remaining unexplored.
Favourable Acquisition Terms
SER has negotiated favourable acquisition terms with Anglo American, comprising:
- $150,000 cash & $150,000 in SER shares upon completion
- An additional $150,000 cash & $150,000 in SER shares on execution of a landholders agreement or 12 months after completion
Anglo American will retain a 2% Net Smelter Royalty (NSR) on production, with SER holding options to repurchase portions of the royalty. SER has committed to spending at least $1,000,000 on exploration within the first two years.
Why Investors Should Take Notice
The strategic energy resources acquisition of diamantina copper-gold project positions SER as a significant player in one of Australia's most promising copper exploration frontiers. Several factors make this opportunity particularly compelling for investors:
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Strategic Asset Location: The project represents the undercover southern extension of the prolific Mt Isa Eastern Fold Belt, a region renowned for world-class IOCG deposits.
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Proven Mineralisation: Multiple drillholes have already intercepted significant copper-gold mineralisation, with grades reaching up to 25.6% copper in select intervals.
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Exploration Upside: The limited drilling to date has only tested a small portion of the identified geophysical anomalies, suggesting substantial exploration potential.
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Copper Market Fundamentals: With global electrification driving copper demand and supply constraints emerging, copper projects with scale potential are increasingly valuable.
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Anglo American Endorsement: The fact that a major like Anglo American conducted systematic exploration at Diamantina provides validation of the project's potential.
Next Steps for SER
SER plans to conduct a comprehensive review of the extensive geophysical and drill core data while the tenements undergo transfer. Land access agreements will be negotiated concurrently, with on-ground exploration expected to commence later this year and drilling scheduled for early 2026.
For investors seeking exposure to copper exploration in a tier-one jurisdiction, the strategic energy resources acquisition of diamantina copper-gold project represents a compelling opportunity with significant upside potential as the company works to unlock the value of this promising project.
Want to Capitalise on Queensland's Next Copper-Gold Frontier?
Strategic Energy Resources has secured a significant foothold in the undercover extensions of Queensland's highly prospective Mt Isa Eastern Fold Belt with the acquisition of the Diamantina Project. With proven mineralisation including intercepts of up to 25.6% copper and substantial exploration upside across multiple untested targets, SER presents a compelling opportunity for investors seeking exposure to copper-gold exploration in a tier-one jurisdiction. To learn more about this strategic acquisition and SER's plans to unlock the project's full potential, visit www.strategicenergy.com.au today.
